TANZANIA

Photo by: paul hampton

United Republic of Tanzania
Jamhuri Ya Muungano Wa Tanzania

COUNTRY OVERVIEW

LOCATION AND SIZE.

A relatively large country located in East Africa, Tanzania has a total
area of 945,087 square kilometers (364,900 square miles), rendering it
slightly larger than twice the size of California. The area of Tanzania
includes the islands of Mafia, Pemba, and Unguja; the latter 2 form a
semi-autonomous region called Zanzibar that is part of an official union
with the republic of Tanzania. With a coastline that spans 1,424
kilometers (883 miles), the eastern part of Tanzania borders the Indian
Ocean, while to the north lies Kenya, to the northeast Uganda, Rwanda,
and Burundi, to the west Zaire, to the southwest Zambia, and, finally,
to the south, Malawi and Mozambique. The former capital of Tanzania, Dar
es Salaam, is situated slightly to the north of the central point along
the coastline of the Indian Ocean. The new capital, Dodoma, is located
slightly to the north of the center of the country.

POPULATION.

In 1975, the total population of Tanzania stood at 15.9 million. Since
then, the population has grown exponentially, reaching a total of 35.3
million in July 2000. Joe Lugalla, author of
Crisis, Urbanization, and Urban Poverty in Tanzania: A Study of Urban
Poverty and Survival Politics,
attributes the rapid population growth to increased life expectancy, a
high birth rate accompanied by a declining rate in infant mortality,
better health care, the availability of clean water, and better
nutrition. With a birth rate of 40.17 births per 1,000 people and a
death rate of 12.88 deaths per 1,000 people, the current population
growth rate, estimated at 2.3 percent (1997), is still quite
significant. Indeed, by 2015, the population will reach approximately
47.2 million. In order to contain this growth, the Tanzanian government
adopted an official population policy in 1992. The policy, which came
into effect in 1995, emphasizes measures designed to increase the
general standard of living of the population. It is argued that one of
the major causes of population growth is poverty, as families are
obliged to have large families in order to increase familial income. The
age structure of Tanzania is relatively young, with 45 percent of the
population aged between 0 and 14 years, 52 percent aged between 15 and
64 years, and only 3 percent aged 65 years and over. More than 80
percent of the population of Tanzania resides in rural areas.

In terms of ethnicity, 99 percent of the population of mainland Tanzania
is of native African descent—95 percent of which belong to one of
the more than 130 tribes that form part of the Bantu group of people.
The remaining 1 percent consists of those of Asian, European, and Arab
descent. The population of Zanzibar is slightly more diverse, with a
higher percentage of Arab and mixed

Arab and native African people. Conversely, religion in Zanzibar is
more homogeneous (less diverse), with 99 percent of the population
adhering to Islam. On the mainland, 45 percent of the population is
Christian, 35 percent Muslim, and 20 percent categorized as adherents to
indigenous religious systems (ones that are unique to the region). The
official languages of the country are English and Kiswahili, the latter
being a Bantu-based language with strong Arabic influences. The first
language of most people, however, is usually one of the numerous local
Bantu languages that are commonly spoken. English is quite prevalent in
the business community, and Arabic is widely spoken in Zanzibar.
Kiswahili, incidentally, has become the common language of central and
eastern Africa.

One of the most daunting problems that the population of Tanzania
confronts is the high incidence of HIV/AIDS. According to data released
by the European Union on 2 December 2000—World AIDS Day—it
is estimated that 1.3 million people in Tanzania have AIDS. This figure
does not include the number of people that are afflicted with HIV, the
condition that almost inevitably causes the fatal AIDS disease. That
same day, President Mkapa announced the formation of the Tanzanian
National AIDS Commission (TanAIDS), which will seek to implement the
country's national strategy to respond to the HIV/AIDS epidemic.
Of course, as in many African countries, the success of an AIDS policy,
however well concocted, will depend on the ability of the government to
address the structural conditions that
facilitate the spread of HIV/AIDS, such as poverty and inequality.

MANUFACTURING.

According to the U.S. Department of State, Tanzania's industrial,
or manufacturing sector, is one of the smallest in Africa. The main
industrial activities include producing raw materials,
import substitutes
, and processed agricultural products. Specific areas of activity
include production of cement, soft drinks, corrugated iron sheeting,
food processing, chemicals, leather products, and textiles.

Once again, manufacturing activities seem to oscillate in their
respective output capacities. In 1991, for example, 85.2 million square
meters of textiles were produced, whereas 5 years later, in 1995, the
output had deteriorated to 33.4 million square meters. The production of
iron sheets similarly suffered decline. In 1993, for instance, 25,800
tons of iron sheets were produced, while in 1996, the figure dropped to
6,400 tons. Production of cement is one area of industrial activity that
has escaped this negative pattern. Notwithstanding a huge increase in
output in 1991, production has increased at a steady pace, growing from
589,100 tons in 1989, to 725,800 tons in 1996.

One of the major factors contributing to industrial instability relates
to persistent power shortages caused by low rainfall. Since Tanzania is
almost entirely dependent upon hydroelectricity, low rainfall translates
into low water levels in hydroelectric dams. In November 2000, the
Ministry of Energy and Minerals was obliged to announce the temporary
introduction of power rationing, intended to reduce electricity
consumption by about 35 percent until the beginning of the next rainy
season in January 2001.

Government involvement in the industrial sector, as in all spheres of
economic activity, has steadily declined since the early 1990s. The
Presidential Parastatal Sector Reform Commission (PSRC), an integral
component of the SAPs, continues to scrutinize
parastatals
and push for privatization. By June 1998, 201 firms of the 398
parastatals singled out by the PSRC experienced privatization. It is
argued that private firms are more efficient and competitive than
parastatals, as they must depend on profit rather than guaranteed
government financing in order to continue operation.

SERVICES

TOURISM.

Tanzania's tourism sector, which, according to the U.S. State
Department, is growing at a rate of more than 8 percent per annum (est.
1999), is one of the country's most important sources of foreign
currency. Currently, most of the tourism sector investment is
concentrated in the northern part of the country in the so-called
Northern Safari Circuit (Ngorongoro Crater, Serengeti Plains, and Lake
Manyara). There, a number of internationally acclaimed hotels provide
services to tourists from around the world, particularly Europeans.

Numerous government initiatives have sought to increase investment in
the Southern Circuit (Selous Game Reserve, Mikumi and Ruaha National
Parks) as well. Though service facilities and infrastructure in this
area are poor, the area's diverse wildlife renders it an ideal
location for further tourist development. The international donor
community has helped finance the rehabilitation of infrastructure in the
Southern Circuit, thereby complementing efforts put forward by the
Tanzanian government. The government, for its part, recently established
the Tanzanian Tourism Board (TTB) to oversee tourist development in the
country, though it has renounced its previous policy orientation of
controlling the tourist market.

FINANCIAL SERVICES.

Legislation passed in August 1991 led to a fundamental
restructuring
of the banking system in Tanzania. Prior to the legislation, the
government exercised a complete
monopoly
over the banking sector. Under the old system, the Bank of Tanzania
acted as the central bank, while the government-run National Bank of
Commerce (NBC) accounted for over 75 percent of the country's
financial transactions. Although the Bank of Tanzania has retained its
functions, which include the administration of the exchange control, the
NBC has been subdivided with the creation of a separate National
Micro-finance Bank (NMB). Both the NBC and the NMB are in the process of
being privatized.

Since the banking legislation was passed, several private banks have
registered with the Bank of Tanzania. In addition to some domestic
financial institutions, numerous foreign banks have established
operations, including Citibank of New York, Stanbic Bank of South
Africa, Standard Charter Bank of Great Britain, EuroAfrican Bank, Akiba
Commercial Bank, and Exim Bank.

CAPITAL:

Dodoma. In 1996, the capital was officially moved from Dar es Salaam to
Dodoma. The National Assembly now meets regularly in the new capital,
though most government ministries are still located in Dar es Salaam.
Slowly, government ministries are being relocated to Dodoma.